BirenTech Achieves "Ttashang" on First Day of Hong Kong GPU IPO

Hit 42.88 Hong Kong Dollars Intraday
Soared 119% Above IPO Price Range Upper Limit

Chinese graphics processing unit (GPU) manufacturer Biren Technology (BirenTech) achieved a "Ttashang" (a term describing a stock price doubling or more on its IPO day) on January 2, its first day of listing. Among companies that have raised over $700 million (approximately 1.01 trillion won) on the Hong Kong Stock Exchange since 2021, BirenTech is expected to close with the highest first-day surge.

According to Bloomberg on January 2, BirenTech soared by 119% on its debut, successfully achieving "Ttashang." The IPO price band was set between 17.0 and 19.60 Hong Kong dollars, but the stock surged intraday to 42.88 Hong Kong dollars.

While GPU-related stocks have previously been listed on China's mainland stock markets, this is the first time such a company is trading on the Hong Kong market. With global interest in artificial intelligence (AI) investment rising, BirenTech raised $717 million. Investor demand was extremely high, with the subscription rate for individual investors reportedly exceeding 2,300 to 1.

BirenTech was co-founded in September 2019 by Zhang Wen, a Harvard graduate and former president of SenseTime, and Zhao Guofang, who previously worked at Qualcomm and Huawei. In 2022, when the United States banned exports of AI chips, BirenTech drew attention by unveiling its "BR100" processor, which rivals the performance of Nvidia's advanced "H100" chip.

Thanks to its technological prowess, BirenTech is considered one of China's "Big Four GPU stocks," alongside Moore Threads, MetaX, and Shanghai Enflame Technology. BirenTech's successful listing is also expected to have a positive impact on companies such as MiniMax Group and Zhifu, which are scheduled to go public on the Shanghai Stock Exchange next week.

Kenny Ng, strategist at China Everbright Securities International, explained, "BirenTech enjoys scarcity value and high market attention," adding, "The GPU industry is experiencing a boom, thanks to many companies focused on innovation and growth potential."

Meanwhile, BirenTech plans to use the funds raised from the IPO for research and development of computing solutions. The company posted a net loss of 1.6 billion yuan ($228.9 million) in the first half of this year.